Japan, US Agree To Press China On Auto Imports

TOKYO -September 10, 2002, Dow Jones reported that Kyodo News reported the Japanese and U.S. trade ministers agreed Tuesday to cooperate in pressing China into complying with an increase in its vehicle import quota.

In telephone talks, Japan's Economy, Trade and Industry Minister Takeo Hiranuma and U.S. Trade Representative Robert Zoellick agreed to press China on its commitments as a World Trade Organization member at an upcoming meeting of the WTO transitional review, the official said, according to the report.

The annual review mechanism to start in late September is designed to check China's compliance with its terms of admission to the Geneva-based world trade watchdog, which it joined in December last year.

Tokyo and Washington share concerns that Beijing might be failing to fulfill its pledge to increase the $8 billion annual quota on auto imports by 15% every year up to 2005, said the official of the Ministry of Economy, Trade and Industry.

Along with the quota increases, China promised to cut auto tariffs in stages toward 2005, when it is to scrap the quota system, according to the official.

Hiranuma and Zoellick also share concerns about the widespread piracy of trademarks and copyrights in China and agreed to urge the Chinese government to enhance measures to crack down on them.

Regarding the recent bilateral trade issue stemming from the U.S. imposition in March of "safeguard" emergency tariffs on steel imports, Hiranuma told Zoellick that Tokyo has called off its reprisal plan in order to wait for the ruling of a WTO dispute-settlement panel, according to the report.